GCC light vehicle automotive aftermarket revenues to top US$12 billion
The rise in the number of cars on the region’s roads has been a significant boost for the automotive aftermarket industry, according to the latest research from Frost & Sullivan.
Electric Vehicles (EVs) represent a major opportunity for the sector
To commemorate its landmark 20th edition, Automechanika Dubai has set up an advisory board tasked with mapping out the future of the automotive aftermarket industry in the MENA region. As the automotive aftermarket industry gathered at Automechanika Dubai this week, the latest market developments were shared during a series of sessions on the exhibition’s main stage. Addressing the growth opportunities and changing trends in the GCC aftermarket, Subhashree Ramarathnam, Principal Consultant, Mobility, Frost & Sullivan, also touched on the opportunities that Electric Vehicles (EVs), a key focus at the 2023 edition of Automechanika Dubai, represent for the aftermarket sector.
Cars are also staying on the road for longer, with a vehicle’s average
“The aftermarket revenue in the light vehicle sector in the GCC stood at $ 9.7 billion in 2022, predicted to grow at an annual rate of 4.4 per cent over the next five years, reaching a forecasted $12 billion in 2027. This includes revenue from parts as well as labour,” she explained.
According to Frost & Sullivan research, the main growth driver for aftermarket revenue is the number of vehicles on the road, with the forecast for the number of light vehicles in the GCC expected to be 15.9 million this year. This figure is expected to rise to 17 million by 2027. The growing young population in the region, rising income levels, urbanisation and ease of financing were pinpointed as the key contributing factors to this upward trend. Cars are also staying on the road for longer, with a vehicle’s average life span moving from 7.5 to eight years.
The rise of mobile on-demand aftermarket service providers and the electrification of cars
“Considering the growth predictions for the region’s automotive aftermarket, the main opportunities in the GCC aftermarket include the digitalisation of parts trading and retail servicing, aftermarket branded parts, the rise of mobile on-demand aftermarket service providers and the electrification of cars,” concluded Ramarathnam.
Frost and Sullivan estimate that by 2030, EVs will constitute 17% of new car sales in the MENA market, while in Africa, they estimate this figure to stand at approximately 9%. The research also suggests 300,000 EVs on the road in the UAE and KSA by 2027. Aftermarket opportunities related to EVs include battery replacements and upgrades, speciality tyres, charging-related accessories, software updates and battery recycling.
The board will combine their extensive industry knowledge
Mahmut Gazi Bilikozen, Portfolio Director at Messe Frankfurt Middle East, the organiser of Automechanika Dubai, added: “This fascinating research paints an optimistic picture for the automotive aftermarket industry in the coming years. As we celebrate 20 years of Automechanika Dubai and look at our own growth and expansion plans, we are excited to announce the formation of a special advisory board for the exhibition. The board will combine their extensive industry knowledge and valuable insights to map out the next two decades of Automechanika Dubai.”
The prestigious board includes Sheerhan Jeeaudeen, Head of Region, Middle East and Africa, ZF Middle East; Amjed Kallan, General Manager Bilstein Group; and Dr Nima Mehrdadi, Managing Director, HELLA. The foremost networking hub for automotive aftermarket professionals in the Middle East, Automechanika Dubai drew to a close today. Taking place at the Dubai World Trade Centre (DWTC), the exhibition spanned 14 halls and featured eight specialised Product Sections – Parts & Components, Electronics & Systems, Accessories & Customising, Tires & Batteries, Car Wash & Care, Oils & Lubricants, Diagnostics & Repair, and Body & Paint.